Goldman Sachs maintained its buying rating for Fancy Years Holdings (1777.HK); it lowered its target price from HK$2.42 to HK$1.75. Previously, it lowered the company's earnings expectations for FY2011, FY2012, and FY2013 by 37%, 49%, and 35%, respectively. The company's 2010 fiscal year results were weaker than expected, with basic profit of RMB 540 million, which was 28% lower than Goldman Sachs's expectations. Goldman Sachs said that the main reason for weaker-than-expected performance was that spending and provisions were higher than expected due to rapid expansion in 2010. The company's 2010 land reserves increased 63% over the previous year. However, the stock is equivalent to a 72% discount on net asset value. Goldman Sachs believes that the stock's valuation already reflects most of the negative factors. The stock closed at HK$1.23 yesterday.